Upscale retailer Neiman Marcus has swung to a second quarter loss after it was hit by slumping sales and writing down the value of its assets by $560.1m.

Like other upmarket retailers, Neiman Marcus has been hit by shoppers trading down to cheaper priced stores.

In January the company, which operates the Neiman Marcus and Bergdorf Goodman nameplates, laid off 375 people as it tries to counter the economic slowdown by cutting costs across its business.

At the time it warned more job losses may follow in future months.

For the three months to 31 January, its net loss was $509.2m compared with a profit of $44.3m in the prior year.

Adjusted operating loss was $32.6m, which is down from operating earnings of $134.3m a year earlier.

Second quarter revenues dropped 21% to $1.08bn from $1.37bn last time. Comparable revenues fell 22.8%.

The Dallas-based company said today (11 March) it incurred charges in the quarter for writing down the value of its assets and trade names, as well as a $32.5m pension curtailment gain.